# Hoist Finance

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/hoistfinance).

## Overview

Hoist Finance is a Swedish credit market company that acquires and manages nonperforming consumer and small-business loan portfolios across Europe. It also operates savings accounts for the public through HoistSpar in selected European markets, alongside its core loan portfolio investment and servicing activities.

## Products & services

• Acquisition and management of nonperforming loan portfolios
• Consumer debt collection and workout services
• SME loan portfolio investment and servicing
• Public savings accounts through HoistSpar
• Portfolio divestment and asset management activities

- **Nonperforming loan portfolios** (75%) — Purchase and management of unsecured and secured NPL portfolios.
- **Loan servicing and collections** (15%) — Workout, collection, restructuring, and recovery services on acquired portfolios.
- **Savings accounts** (8%) — Retail deposit products offered to the public through HoistSpar.
- **Other financial and group items** (2%) — Central functions, funding-related items, and other group-level activities.

- Acquisition and management of nonperforming loan portfolios
- Consumer debt collection and workout services
- SME loan portfolio investment and servicing
- Public savings accounts through HoistSpar
- Portfolio divestment and asset management activities

## Customers

Hoist Finance’s main customers are banks and financial institutions that sell nonperforming loan portfolios, and the company earns returns by acquiring and managing those receivables. Its borrower-facing activity involves individuals and small businesses whose overdue loans are being serviced or restructured, while savings customers place deposits with HoistSpar in selected European countries.

- **Banks and financial institutions** (primary) — They sell nonperforming loan portfolios to Hoist Finance because it provides a buyer for distressed credit assets.
- **Borrowers in acquired portfolios** (primary) — Individuals and small businesses whose overdue loans are serviced, collected, or restructured by Hoist Finance.
- **Retail savings customers** (secondary) — Individuals placing deposits in HoistSpar savings accounts in selected European markets.
- **Funding and capital markets counterparties** (secondary) — Banks and investors that provide funding, advisory, or issuance capacity supporting the business model.

- Banks and financial institutions selling NPL portfolios
- Borrowers in acquired consumer and SME loan portfolios
- Retail savers using HoistSpar deposit accounts
- Counterparties in portfolio acquisitions and funding markets
- Borrowers seeking repayment plans or debt restructuring

## Geography

Hoist Finance operates across 14 European countries, with major operating exposure in Italy, Germany, Poland, France, Greece, Spain, Sweden, and other European markets. It also offers savings accounts in six European countries, and its regulatory base is in Sweden under Swedish banking supervision and EU rules.

- **Italy** (0%) — Operating segment disclosed; no consolidated revenue share provided
- **Germany** (0%) — Operating segment disclosed; no consolidated revenue share provided
- **Poland** (0%) — Operating segment disclosed; no consolidated revenue share provided
- **France** (0%) — Operating segment disclosed; no consolidated revenue share provided
- **Greece** (0%) — Operating segment disclosed; no consolidated revenue share provided
- **Spain** (0%) — Operating segment disclosed; no consolidated revenue share provided
- **Sweden** (0%) — Operating segment disclosed; no consolidated revenue share provided
- **Other European countries** (0%) — Includes Netherlands, Belgium, Cyprus, UK, Portugal and Finland

- Active in 14 European countries across loan portfolios and servicing
- Savings accounts offered in six European countries through HoistSpar
- Sweden is the regulatory and supervisory home market
- Major operating markets include Italy, Germany, Poland, France, Greece and Spain
- Geographic diversification reduces dependence on any single recovery market

## Strategy

Hoist Finance’s strategy is built around acquiring and managing nonperforming loans in major European markets, with a focus on controlled credit risk and diversified portfolio exposure. The company also seeks to expand into SME assets, broaden its geographic footprint, and complement the core business with retail savings funding.

- **Grow in core European NPL markets** (medium-term) — Scale in large markets improves portfolio access and recovery opportunities.
- **Expand SME asset class** (medium-term) — SME NPLs are a large European segment and diversify the portfolio mix.
- **Broaden geographic coverage** (medium-term) — More markets reduce concentration risk and improve sourcing optionality.
- **Preserve diversified funding and liquidity** (short-term) — The business depends on funding portfolio purchases and managing cash flows.

- Increase share in existing NPL markets
- Expand into SME nonperforming loan assets
- Broaden geographic coverage across Europe
- Use diversified funding and liquidity sources
- Maintain controlled exposure to credit risk

## Risks

Hoist Finance’s main risks come from the performance of acquired loan portfolios, competition in portfolio auctions, and regulatory oversight as a Swedish credit market company. Because the business depends on recoveries from distressed debt, credit performance, tax structures, and legal enforcement conditions across countries can materially affect results.

- **Credit risk in acquired loan portfolios** [high] — Returns depend on collecting more cash than was paid for the portfolios; weaker recoveries hurt earnings.
- **Competition in the acquisition market** [high] — More bidders can push up portfolio prices and compress returns.
- **Regulatory framework risk** [high] — The company is supervised in Sweden and operates under EU and local rules that can change collections or deposit operations.
- **Tax and VAT complexity** [medium] — Portfolios are held in different structures across countries, creating tax assessment risk.
- **Liquidity and funding risk** [high] — The model requires stable funding to acquire portfolios and maintain operations.

- Portfolio recoveries can fall below purchase assumptions
- Competition can raise acquisition prices and reduce returns
- Regulatory changes can affect collections and deposit activities
- Tax and VAT treatment varies across jurisdictions
- Liquidity and funding are needed to finance portfolio purchases

## Accounting

The most important accounting judgments are the valuation of acquired loan portfolios, impairment testing, and the treatment of credit-impaired interest income. Because recoveries are estimated over long periods, changes in expected cash flows, discount rates, or write-off assumptions can materially affect carrying values and reported income.

- **Valuation of acquired loan portfolios** — Can materially change income and asset values
- **Credit-impaired interest income** — Affects net interest income timing
- **Write-off policy** — Impacts carrying amount and loss recognition
- **Impairment testing for goodwill and intangibles** — Can create non-cash impairment charges
- **Hedge accounting and derivatives** — Influences volatility in reported earnings

- Acquired loan portfolios are measured using expected recovery cash flows
- Credit-impaired interest income uses credit-adjusted effective rates
- Write-offs depend on when recovery is no longer reasonably expected
- Goodwill and intangibles require annual impairment testing
- Hedge accounting affects FX and interest-rate risk presentation

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*Last updated: 2026-08-11T04:04:53.223229+00:00*